# Investment Goal Calculator (Canadian)

What will it take to reach your investment goal? Use this investment goal calculator to determine how much your investment might grow before taxes, after taxes and after taxes and inflation. It will also provide suggestions on what to change if your plan doesn't look like it will meet your investment goal.

## Investment Goal Calculator (Canadian) Definitions

Investment goal
Your goal for the total value of your investment or investments.
Years to accumulate
The number of years you have to save.
Amount of initial investment
Total amount you will initially invest or have currently have invested toward your investment goal.
Periodic contribution
The amount you will contribute each period to your investment. You are also able to select whether you wish to have your contribution happen at the beginning or the end of the period.
Contribution frequency
The frequency you will make regular contributions to this investment.
Compound interest
Interest on an investment's interest, plus previous interest. The more frequently this occurs, the sooner your accumulated interest will generate additional interest. You should check with your financial institution to find out how often interest is being compounded on your particular investment.
Make deposits at beginning of the period
Check this box to have all additional contributions happen at the beginning of each period. Uncheck this box for the end of the period. Making contributions at the beginning of each period allows your money to begin earning a return immediately increasing your return.
Rate of return on investment
This is the rate of return you expect from your investments. You are also able to select the frequency that earnings are compounded in your investment account. The actual rate of return is largely dependent on the type of investments you select. For example, for the last thirty years the average annual rate of return for the TSX is about 10%. Savings accounts at a bank or credit union may pay as little as 2% or less. It is important to remember that future rates of return can't be predicted with certainty and that investments that pay higher rates of return are subject to higher risk and volatility. The actual rate of return on investments can vary widely over time, especially for long-term investments. This includes the potential loss of principal on your investment.
Expected inflation rate
What you expect for the average long-term inflation rate.
Marginal tax rate
Your marginal tax rate.